Value Added Tax (Flat-rate Valuation of Supplies of Fuel for Private Use) Order 2013

Transcription

1 Index VALUE ADDED TAX (FLAT-RATE VALUATION OF SUPPLIES OF FUEL FOR PRIVATE USE) ORDER 2013 Index Artile Page 1 Title Commenement Flat-rate basis of valuation of supplies of fuel for private use Revalorisation of the flat-rate valuation of supplies... 4 SCHEDULE 1 5 SCHEDULE 2 6 SCHEDULE 3 9 SD 0391/13 Page 1

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3 Artile 1 Statutory Doument No. 0391/13 Value Added Tax At 1996 VALUE ADDED TAX (FLAT-RATE VALUATION OF SUPPLIES OF FUEL FOR PRIVATE USE) ORDER 2013 Approved by Tynwald: Coming into Operation: 1 February 2014 The Treasury makes the following Order under setion 95(3) and (4) of, and paragraph B1 1 of Shedule 7 to, the Value Added Tax At Title This Order is the Value Added Tax (Flat-rate Valuation of Supplies of Fuel for. 2 Commenement This Order omes into operation on 1 February Flat-rate basis of valuation of supplies of fuel for private use (1) Where a person opts for valuation on the flat-rate basis in aordane with paragraph A1 2 (option for valuation on flat-rate basis) of Shedule 7 (Valuation Speial Cases) to the Value Added Tax At 1996, the valuation of all supplies of road fuel made to any one individual in respet of any one ar for a presribed aounting period is to be determined in aordane with the valuation table, and the notes to that table whih are set out in Shedule 2 to this Order. (2) The valuation table is the urrent updated valuation table published under artile 4(3), or 1 Paragraph B1 was inserted by SD 0288/13. SD 0288/13 also amended setion 95(4)(h) of the At to require any order made under paragraph B1 of Shedule 7 to be approved by Tynwald 2 Paragraph A1 was inserted by SD 0288/13 SD 0391/13 Page 3

4 Artile 4 Value Added Tax (Flat-rate Valuation of Supplies of Fuel for if no table has been published under artile 4(3), the table set out in Shedule 1 to this Order ( the base valuation table ). 4 Revalorisation of the flat-rate valuation of supplies (1) The Treasury must revalorise the amounts speified in the base valuation table in aordane with the method set out in Shedule 3 to this Order. (2) On eah oasion that the Treasury revalorise, a table (an updated valuation table ) ontaining the revalorised amounts is to take effet (and replae any existing valuation table) from the date the Treasury speifies ( the revalorisation start date ). (3) The Treasury must publish the updated valuation table before the revalorisation start date together with a statement speifying the revalorisation start date. (4) The Treasury must revalorise in suh time that eah revalorisation start date is no more than twelve months after the previous revalorisation start date and must revalorise the amounts speified in the base valuation table prior to 1 May MADE 13 th November 2013 W E TEARE Minister for the Treasury Page 4 SD 0391/13

5 SCHEDULE 1 SCHEDULE 1 [Artile 3(2)] Base valuation table Average retail pries (rounded to nearest 1p) in the UK as at 11 Marh 2013 Diesel a litre Unleaded petrol 1.40 a litre Desription of vehile: Vehile s CO2 emissions figure VAT inlusive onsideration for a 12 month presribed aounting period VAT inlusive onsideration for a 3 month presribed aounting period VAT inlusive onsideration for a 1 month presribed aounting period 120 or less or more SD 0391/13 Page 5

6 SCHEDULE 2 Value Added Tax (Flat-rate Valuation of Supplies of Fuel for SCHEDULE 2 [Artile 3(2)] NOTES TO THE VALUATION TABLE 1 For a ar of a desription in the first olumn of the valuation table, the value on the flat-rate basis of all supplies of road fuel made to any one individual in respet of that ar for a presribed aounting period is the amount speified under whihever of the seond, third or fourth olumns that orresponds with the length of the presribed aounting period. 2 Where a CO2 emissions figure is speified in relation to a ar in a UK approval ertifiate or in a ertifiate of onformity issued by a manufaturer in another Member State orresponding to a UK approval ertifiate, the ar s CO2 emissions figure for the purposes of the valuation table is determined as follows () (d) if only one figure is speified in the ertifiate, that figure is the ar s CO2 emissions figure for those purposes; if more than one figure is speified in the ertifiate, the figure speified as the CO2 (ombined) emissions figure is the ar s CO2 emissions figure for those purposes; if separate CO2 emissions figures are speified for different fuels, the lowest figure speified, or, in the ase within, the lowest CO2 (ombined) emissions figure speified is the ar s CO2 emissions figure for those purposes; or if the ar s CO2 emissions figure (determined in aordane with to () is not a multiple of 5, it is rounded down to the nearest multiple of 5 for those purposes. 3 Where no UK approval ertifiate, or a orresponding ertifiate of onformity issued by a manufaturer in a member State, is issued in relation to a ar, or no emissions figure is speified in relation to it in any suh ertifiate, the ar s CO2 emissions figure for the purposes of the valuation table is () 140 (if its ylinder apaity is 1,400 ubi entimetres or less); 175 (if its ylinder apaity exeeds 1,400 ubi entimetres but does not exeed 2,000 ubi entimetres); and 225 or more (if its ylinder apaity exeeds 2,000 ubi entimetres). Page 6 SD 0391/13

7 SCHEDULE 2 4 In the ase of a ar having an internal ombustion engine with one or more reiproating pistons, its ylinder apaity is the apaity of its engine as alulated for the purposes of the Liensing and Registration of Vehiles At In any ase where in a presribed aounting period, there are supplies of fuel for private use to an individual in respet of one ar for a part of the period and in respet of another ar for another part of that period; and at the end of that period one of those ars neither belongs to, nor is alloated to, the individual, the flat-rate value of the supplies is determined as if the supplies made to the individual during those parts of the period were in respet of only one ar. 6 (1) Where paragraph 5 applies, the value of the supplies is to be determined as follows if eah of the two or more ars falls within the same desription of ar speified in the valuation table, the value speified in that valuation table for that desription of ar applies as if only one of the ars were to be onsidered throughout the whole period; and if one of those ars falls within a desription of ar speified in that table whih is different from the others, the value of the supplies is the aggregate of the relevant frations of the onsideration appropriate for eah desription of vehile in the valuation table. (2) The relevant fration, in relation to any ar, is that whih the part of the presribed aounting period in whih fuel was supplied for private use in respet of the ar bears to the whole of the period. 7 CO2 emissions figure means a CO2 emissions figure expressed in grams per kilometre driven. 8 UK approval ertifiate means a ertifiate issued under setion 58(1) or (4) of the Road Traffi At 1988 (of Parliament) 3. 9 Company ar means a ar that is made available by an employer; to an employee or member of an employee s family or household; (of Parliament) SD 0391/13 Page 7

8 SCHEDULE 2 Value Added Tax (Flat-rate Valuation of Supplies of Fuel for () (d) (e) (f) by reason of the employee s employment; without any transfer of the property in it; available for private use; and fuel is provided for private use. Page 8 SD 0391/13

9 SCHEDULE 3 SCHEDULE 3 [Artile 4(1)] Method for revalorisation of amounts speified in the base valuation table 1 The amounts in the base valuation table are to be revalorised in aordane with the following steps. 2 Step 1 establishing the urrent fuel prie In respet of eah fuel (petrol and diesel) the urrent average retail prie of a litre of fuel in the UK is to be asertained from reliable data. The resulting figures ( the urrent fuel pries ) are to be rounded down to the nearest whole penny. 3 Step 2 alulating the prospetive exise duty differenes (1) If a hange in the rate of exise duty liable to be harged on road fuel is due in the period beginning on the date that the Treasury revalorises the amounts in the base table and ending a alendar year after the next revalorisation start date the prospetive inrease or derease in the amount of exise duty hargeable per litre of eah of the fuels is to be alulated by () adding the amount of VAT that is appliable to the inreased or dereased amount of exise duty hargeable and rounding down the resultant figures to the nearest whole penny; dividing the number of days of the alendar year beginning on the revalorisation start date in whih the inrease or derease in exise duty is likely to apply by 365 (or 366 in a leap year) and expressing the result of that alulation as a perentage rounded down to two deimal plaes; and multiplying the inreased or dereased amount alulated in aordane with in respet of eah of the fuels by the perentage alulated in aordane with, eah resultant figure is to be rounded down to the nearest whole penny. (2) If the valuation table is intended to have effet for less than a full alendar year the periods speified in (1) must be amended aordingly. 4 Step 3 alulating the exise duty inlusive fuel prie For eah fuel, the prospetive exise duty differene alulated in aordane with Step 2 is to be added to, or deduted from, the urrent fuel prie. The resultant figure is the duty inlusive fuel prie. SD 0391/13 Page 9

10 SCHEDULE 3 Value Added Tax (Flat-rate Valuation of Supplies of Fuel for 5 Step 4 alulating the perentage prie differene The perentage prie differene for eah of the fuels is to be alulated using the following formula where A represents the duty inlusive fuel prie for eah fuel and B represents the prie as at 11 Marh 2013 (as set out in the base valuation table) of that fuel. The resulting perentages are to be rounded down to two deimal plaes. 6 Step 5 alulating the weighted perentage prie differene If the perentage prie differene for eah fuel is not the same, the average is to be alulated by weighting aording to the relative number of petrol and diesel ompany ars in the UK (asertained from reliable data) by using the following formula where C and D represent the perentage prie differene for petrol and diesel respetively and E and F are the numbers of petrol and diesel ompany ars respetively. The resulting perentage is to be rounded down to two deimal plaes. 7 Step 6 alulating the inrease or derease in the amounts in the table Eah amount speified in the base valuation table is to be amended by multiplying that amount by the weighted perentage prie differene rounded down to the nearest whole pound. Page 10 SD 0391/13

11 Explanatory Note EXPLANATORY NOTE (This note is not part of the Order) Value Added Tax ( VAT ) is payable if road fuel aquired by a business is used for private motoring. Counil Deision 659/2006/EC 4 of 25 September 2006 authorises the United Kingdom (and hene the Island) to fix, on a flat-rate basis, the proportion of VAT that relates to expenditure on fuel inurred by a business whih is used for private purposes. That proportion is required to be expressed in fixed amounts and is to be established on the basis of the CO2 emissions level of the type of vehile to reflet fuel onsumption. The amounts must be adjusted annually to reflet hanges in the average ost of fuel. Paragraph A1 5 of Shedule 7 to the Value Added Tax At 1996 provides that, where fuel is provided for (or appropriated to) private use, the taxpayer may opt to value all suh supplies on a flat-rate basis. Paragraph B1 6 of that Shedule provides that the Treasury must, by order, make provision for the flat-rate valuation of those supplies. Artile 3(1) provides that the flat-rate basis for the valuation of supplies of road fuel for private use must be determined in aordane with the valuation table and the notes to that valuation table. Artile 3(2) defines what is meant by valuation table and introdues the base valuation table whih is set out in Shedule 1. Artile 4(1) provides that the Treasury is required to revalorise the amounts of the flatrate harge and must do so in aordane with the method set out in Shedule 3. Artile 4(2) provides that eah time the amounts of the flat-rate harge are revalorised an updated valuation table is to take effet from a date speified by the Treasury. Artile 4(3) requires the Treasury to publish the updated valuation table and to publish a statement speifying the date from whih that table is to take effet. Artile 4(4) provides that the Treasury must revalorise at least one in eah twelve month period and provides a time limit in whih the first revalorisation must be arried out. 4 OJ No L272, , p.15 5 Paragraph A1 was inserted by SD 0288/13 6 Paragraph B1 was inserted by SD 0288/13 SD 0391/13 Page 11